Read the Conversation
Meeting highlights:
- India's $216 Billion Healthcare Opportunity: Diagnostics is a key growth area, with the challenge of providing access to advanced solutions for a vast and diverse population
- Roche's Two-Front Innovation: Focusing on both products & solutions and delivery models, Roche collaborates closely with hospital chains and local labs to provide better infrastructure to the country.
- Roche India's Center of Excellence in Digital Healthcare: Advancing diagnostic capabilities through data-driven insights and AI-powered algorithms, streamlining operations and improving efficiency with automated processes.
- "A patient's primary need is not a test or medication, but an accurate diagnosis." The need to build integrated and collaborative healthcare systems that promote early and effective diagnosis in both the private and public sectors to address future health challenges
EF: What unique challenges and opportunities have you encountered in your new role as Managing Director for Roche Diagnostics India and Neighbouring Markets?
RG: I am thrilled and honored to lead this organization at such a pivotal time for India. The country's healthcare sector is undergoing a massive transformation, with diagnostics set for significant growth.
A recent Praxis report values the Indian healthcare ecosystem at $216 billion, but diagnostics currently account for only 6% of it and are highly fragmented. This fragmentation presents opportunities for consolidation and expansion into untapped markets, especially in Tier 3 and 4 regions. This will improve access to preventive care and essential diagnostics.
The diagnostics sector is expected to grow at a CAGR of 14%, reaching $25 billion by FY 2028. Factors driving this growth include rising life expectancy and a growing affluent middle class demanding better healthcare, including private insurance. On top of that, the government's universal healthcare initiative, Ayushman Bharat, is a game changer. It is one of the world’s largest healthcare insurance programs, covering over 345 million citizens with up to ₹500,000 per eligible family per year of free healthcare, including hospitalization.
While this growth is exciting, maintaining quality and consistency at a large scale is the key challenge. Here, digitalization plays a critical role. By leveraging digital tools, we can improve efficiency and accessibility, pushing the market toward the projected growth. On the public side, the government emphasizes digitalization through initiatives like Ayushman Bharat.
One of the biggest ironies in India is that, despite the growing healthcare ecosystem, many people still lack access to diagnostics. As market leaders, we have a responsibility to bridge this gap and ensure that diagnostics are accessible to everyone, from preventive care to disease treatment.
EF: How are you collaborating with public and private players to improve access to your products?
RG: In India, the market is highly fragmented. The reach of organized private sector operations in India is limited as a substantial segment remains out-of-pocket. Our goal is to seamlessly integrate available healthcare systems, ensuring access to world-class diagnostic tests by catering to a broad spectrum of clients, including major hospitals, enterprise labs like Lal Pathology Labs and Agilus, and even public hospitals.
With a legacy of 128 years, one of the things we are most proud of at Roche Diagnostics is the level of innovation we bring to the country every day. Globally, we have invested CHF 13.2 billion in R&D in 2023. Our focus on innovation operates on two fronts: the product and solution development and the delivery model. Both are designed to meet the growing clinical demands of India's evolving healthcare system. To illustrate, we were the first to introduce the RT-PCR test during COVID-19. Recently, we launched the first cerebrospinal fluid test for Alzheimer's, addressing a critical need in India's growing geriatric population. We are also tackling Hepatitis C, a significant issue in Southeast Asia, as our HCV Duo Test simplifies disease management. In diabetes care, we're developing a CGM solution with an AI-trained algorithm. This will empower users to take proactive measures and prevent complications.
Our delivery model plays a critical role in improving access and ensuring that our innovations reach the patients who need them most. For example, our "Safe Blood" portfolio, which leverages nucleic acid testing (NAT), focuses on ensuring safe blood availability across both larger and smaller cities through a centralized hub-and-spoke model. Blood samples from remote satellite centers are sent to central hubs for testing, ensuring they are free from transfusion-transmissible infections (TTIs). Safe blood access is a fundamental right, and this model is essential for underserved patients in smaller cities.
We are ranked #1 in blood safety solutions in India. We work with over 70 major blood banks, including prestigious institutions like AIIMS, King George’s Medical University, and Kokilaben Dhirubhai Ambani Hospital. We are also partnering with state governments, such as Odisha, Madhya Pradesh, Uttarakhand, and Jammu & Kashmir, to expand access further.
We have recently acquired Lumira, strengthening our diagnostics portfolio in point-of-care testing, which are vital solutions for improving access in underserved areas. Moreover, we are working on a dengue fever diagnostic test and introducing mass spectrometry, a gold-standard diagnostic method. With these innovations and delivery models, we are expanding access and raising the quality of diagnostics across India.
EF: How is Roche India leveraging local talent to drive innovation?
RG: Roche is deeply invested in India. Our Digital Healthcare Center of Excellence in Pune, known internally as RIS (Roche Information Systems), focuses on leveraging technology to deliver actionable insights in healthcare. A prime example of this center’s cutting-edge work is how we use AI in diagnostics to enhance data for pathologists, boosting their diagnostic confidence.
Another key area we are working on is the navify pathology portfolio. This platform allows healthcare providers to scan biopsy images and share them with peers across their network for additional opinions on complex cases. This helps our diagnostic lab customers integrate workflows, automate decision-making, and reduce errors, leading to their sustainable growth.
Another excellent example is our diabetes management app, mySugr. This app helps individuals manage their diabetes using Bluetooth technology to track blood glucose patterns and their progress. India is one of the leading users of this app, setting an example for other markets.
In India, we also lead in critical areas like women's health and cardiology. Our best practices here are being replicated globally, particularly in similar LMICs. Our local operations are setting global standards in these areas, showcasing the importance of our diagnostic innovations in India and globally.
EF: What new nickname would you give India, considering its significant contributions that go beyond its role as "pharmacy of the world"?
RG: A patient's primary need is not a test or medication but an accurate diagnosis. COVID-19 highlighted diagnostics' critical role in India, elevating it to a healthcare priority. We now must maintain this focus and continue to innovate.
An essential point is bringing MedTech and pharma to collaborate closer. For Alzheimer's, we introduced a cerebrospinal fluid test, addressing an unmet need while pharmaceutical companies are preparing to launch Alzheimer's drugs. We are collaborating to ensure diagnostics and treatment go hand in hand. Another example is HPV, as India has a high cervical cancer death rate. We offer the screening test, while others provide the vaccine and treatment. I do not have a specific name, but the key lies in collaboration across industries, ensuring we give patients holistic healthcare solutions.
EF: What future trends in diagnostics do you see? How will innovation, technology, and AI shape the industry?
RG: Two key elements will shape the future of diagnostics: digitalization and AI. Lab chains are consolidating, and digital tools will streamline workflows, ensuring a consistent and high-quality patient experience. AI's impact on diagnostics will be transformative, changing how we gather, interpret, and act on clinical data.
At Roche, we are leading the integration of AI solutions. In our centralized diagnostics portfolio, automation enables the majority of auto-verification. Decades ago, pathologists manually verified every sample. Today, AI and automation automate most of these processes, reducing human intervention and increasing efficiency. Turnaround times decrease, and patients receive faster service.
AI's most profound impact will be in tissue diagnostics, addressing the shortage of histopathologists. By leveraging AI and machine learning, systems can analyze data, flag critical findings, and enhance the capacity for reading and interpreting tissue glass slides. This could exponentially increase the number of biopsies reviewed daily.
So far, we have integrated close to 15 new AI algorithms into our systems, demonstrating our commitment to innovation. With technology, automation, and growing government and private sector focus on healthcare, the diagnostic industry is set to move forward.
EF: As a message to investors: What makes this the moment to invest in diagnostics- especially in India?
RG: Access to diagnostics in India remains a significant challenge.
NCDs account for 63% of all deaths in India, with cardiovascular diseases contributing to 27%. In 2022, India saw 1.4 million new cancer cases, with an estimated 12.8% increase in incidence by 2025.
Treating NCDs will keep escalating costs, leading to a growing economic burden. Prevention, early diagnosis, and timely treatment are crucial for reducing mortality and alleviating this strain. India's young population will age in the next 20-30 years, increasing the prevalence of NCDs. India is already the diabetes capital of the world, and lifestyle-related diseases like cancer are becoming more common. The need for diagnostics will only grow.
EF: When you raise your glass to celebrate your first year at Roche Diagnostics India, what accomplishment will you be most proud of?
RG: I am proud of two things this year. First, our team has outpaced the market and brought innovative solutions to India while executing global strategies seamlessly. Roche Diagnostics India has some of the best talent in the industry, and we are exporting this talent to other regions.
Second, we have lived our mission of "Doing now what patients need next." We have successfully brought many product launches and innovations to India. It is a privilege to bring these advancements to a country of 1.4 billion people, especially at such a critical time.
